An organization chart is a graphic representation of the organization’s formal structure. It shows the organization’s various activities and the specific members or categories of members assigned to carry them out (Johns, 2011). It is also represents lines of authority and responsibility. An organizational chart is either horizontal or vertical tree that represent staff. It also shows the formal structure of a company or business. The limitation can be numberous for example. It can become out dated very quickly if staff is changed regularly. The chart can also have limitation if the company has a high turn-over rate. Small company I think only benefit from an organizational chart. Large companies do have them, but it changes almost every day. For any company or organization strategic planning can be good thing. It helps to predict the future environment of the business, company, or organization. It gives you a better idea of how to plan for the future. The chart can also be used as a decision making on allocating it resources to pursue its strategy, including capital and people. References

...Organizational Hierarchy
Adapting Old Structures to New Challenges
by Valdis Krebs
"We may not be interested in chaos, but chaos is interested in us." - Robert Cooper
When change was slow, and the future was pretty much like the present, hierarchical organizations were perfect structures for business and government. The world is no longer predictable, nor are solutions obvious. Old structures are no longer sufficient for new complex challenges.
Businesses have noticed the changes and are adapting. From GE's boundaryless organization to Toyota's amazingly flexible supply web, agility and adaptability are the mantra. Unfortunately most governments are not as quick and creative. Instead of the out-of-the-box thinking found increasingly in the business world, governments are busy shuffling boxes on the organization chart.
Figure 1 below is a typical organization chart of a generic hierarchical organization -- either business or government. Two nodes are connected by a gray link if there is a formal reporting relationship and information flow. The nodes on the bottom row represent sub-organizations, while the top two rows are individuals.
Figure 1 - Original Hierarchy
Assume the above organizationalchart roughly represents the U.S. intelligence community. Node 001 is the President and nodes 007 to 016 are various intelligence agencies. Nodes 002 to 006 are the leaders of those various agencies....

...to achieve that is the organizational structure.
Organizational structure theory is especially useful for people who manage organizations, or who aspire to do so in the future. It enables the manager to see that his or her organization and its problems are rarely wholly unique. Usually, much of value can be learned from examining the behavior of other organizations in broadly similar circumstances.
Organizations, especially large organizations are generally 'complex', having many inter-related facets and areas that need to be coordinated, managed together to achieve efficiencies and effectiveness in achieving stated goals and objectives. Organizations also need to be 'adaptive', they need to respond to ongoing changes in the environments in which they operate e.g. the political, economic and technological conditions that together form the environment in which organizations operate.
However, before studying deeply on organizational structure, we need to know how important of having an organizational structure. That is the reason why we chose the topic: “The reasons why the organizational structure in any business is important”
My composition is divided into 3 parts:
Part 1: The definition and classification of organizational structure.
Part 2: The important role of organizational structure in one business.
Part 3: The case study “how to create an effective...

...13
Organizational Structure
LEARNING OBJECTIVES
After reading this chapter, you should be able to: 1. Describe three types of coordination in organizational structures. 2. Justify the optimal span of control in a given situation. 3. Discuss the advantages and disadvantages of centralization and formalization. 4. Distinguish organic from mechanistic organizational structures. 5. Identify and evaluate the six pure types of departmentalization. 6. Describe three variations of divisional structure and explain which one should be adopted in a particular situation. 7. Diagram the matrix structure and discuss its advantages and disadvantages. 8. Compare and contrast network structures with other forms of departmentalization. 9. Identify four characteristics of external environments and discuss the preferred organizational structure for each environment. 10. Summarize the influence of organizational size, technology, and strategy on organizational structure.
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Part Four Organizational Processes
organizational structure The division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities.
What organizational structure will work best for BioWare? We’ll find out in this chapter. Organizational structure refers to the division of labor as...

...Organizationalcharts are detailed representations of organization structures and hierarchies. They are typically used to provide both employees and individuals outside the organization with a "snapshot" picture of it's reporting relationships, divisions of work, and levels of management. Obviously, smaller firms—whether they consist of a single owner of a home-based business, a modest shop of a few employees, or a family-owned business with a few dozen workers—are less likely to utilize organization charts, since the information that is gleaned from chart representations is typically pretty self-evident with such businesses. "Small organizations can get along very well without them as long as everyone understands what they are to do and who they are to do it with, " stated James Gibson, John Ivancevich, and James Donnelly in Organizations: Behavior, Structure, Processes. But many consultants and small business owners contend that an organization chart can be a useful tool for growing firms.
Business owners endeavoring to allocate responsibilities, activities, and management authority to various employees also have to make certain that they coordinate the activities of those employees to avoid gaps and/or redundancies in operations and management. "It is helpful to think of organizational design elements as building blocks that can be used to create a structure to fulfill a particular...

...WHAT IS AN ORGANIZATION CHART? DESCRIPTION
Every organization has both a formal and an informal organizational structure. Examples of organizational structures are:
• Hierarchical structure (typical for the small, entrepreneurial organization)
• Line-staff structure
• Functional or Departmental structure (based on function, products/service, customer type, geographic region)
• Matrix structure (dual reporting lines)
These formal structures of organizations can be represented in the form of an organization chart. Sometimes also referred to as organizationalchart, organigram, organogram, or org chart. It graphically shows the hierarchical authority, roles and responsibilities, functions and relations within an organization. For a new employee, the organization chart helps to understand what should happen within the firm. (The informal structure represents what is actually occurring within the organization.)
Many people have pointed out weaknesses and limitations of org charts. Others have coined a dizzying array of buzzwords to categorize organizations, including networked organizations, transnational organizations, front-back organizations, boundaryless organizations, learning organizations, virtual organizations and social networks.
Nevertheless organizational design continues to be one of an important and challenging...

...Chapter 10 Basic Organizational Design
Once managers are done planning, then what? This is when managers need to begin to “work the plan.” And the first step in doing that involves designing an appropriate organizational structure. This chapter covers the decisions involved with designing this structure. Focus on the following learning outcomes as you read and study this chapter.
LEARNING OUTCOMES
10.1 Describe six key elements in organizational design.
10.2 Contrast mechanistic and organic structures.
10.3 Discuss the contingency factors that favor either the mechanistic model or the organic model of organizational design.
10.4 Describe traditional organizational designs.
A MANAGER’S DILEMMA
How can we design an organizational structure that will help us accomplish our company’s goals? Should our structure be tall or flat? Traditional or contemporary? Will our chosen design enhance our capacity to continuously learn, adapt, and change in a dynamic global environment? As tomorrow’s managers, many of your students will soon face these questions. In Chapter 10, students learn about various elements of organizational structure, the contingency factors that influence organizational design, and traditional and contemporary design. In addition, they will study design challenges encountered by managers who work in a variety of...